We know much about globalizing corporations via technology and the like; we know much less about globalizing people. What globalization means for executives as individuals---how their roles change with globalization; what individual personality traits, skills, and experiences will matter most; and how easy, or difficult, it is for them to adjust. Indeed, corporations are raising concerns about their management teams. Based on an extensive research project including data from over 14,000 managers from companies around the world, this session will describe essential global leadership attributes called Global Mindset. They are attributes that move beyond cross-cultural intelligence to the ability to operate effectively in different institutional, legal, and social contexts. You will leave this session with a clear understanding of what Global Mindset is, how to measure it, and, most importantly, how to nurture it in your organization in ways that leverage performance and effectiveness.

1. The MBA Challenge:
Are They Ready?
Mary B. Teagarden
Professor of Global Strategy
Connections 2012
Dublin, Ohio
May 1, 2012

2. The future ain’t what
it used to be.
Yogi Berra

3. The Globally Integrated
Enterprise
“…the emerging globally integrated enterprise
is a company that fashions its strategy, its
management, and its operations in pursuit of
a new goal: the integration of production and
value delivery worldwide. State borders
define less and less the boundaries of
corporate thinking or practice.”
Samuel J. Palmisano,
Chair of the Board, President, and CEO–IBM
3

4. Global Supply Chains
4

5. Global Supply Chains
• Supply chains of 8000 miles or 3000
partners based on low cost are not
enough—or well manageable.
• Global demand chains are emerging—
customer focused and customer
centric.
• Information is approaching zero unit
cost and infinite availability.
• Ability to connect with the customer will
be key.

6. Global Organizations

7. Global Organizations
• Global footprint will no longer be sufficient.
• Global organizations need new business
models, new supply channels, new ways
to cut costs and bring products and
services to market: INNOVATION &
IMOVATION!
• Business models are becoming the
dynamic battle ground for competing.
• Brand and its reach will be the prime
competitive thrust.

8. Alliances & Partnerships
© ValdisKrebs

9. Alliances and Partnerships
• Collaborating with partners will be key
for brand reach, smooth flowing supply
chains, geographic reach, and
information access.
• Models of capitalism and markets are
not all created equal.
• Business-government partnerships are typical
in many growth markets.
• Governments might be the business partner!

10. Global Customers

11. Global Customers
• The bottom of the pyramid (BOP) is the
emerging opportunity.
• Perfect simple designs
• Low margins and high volumes are key
• Both depend on customer intimacy.
• Social responsibility will grow to meet
customer expectations and align with
communities where employees live and
work.
• Besides, millenials expect it!

12. Global Employees

13. Global Employees
• Jobs are increasingly horizontal, cross-
functional, and cross corporate.
• Collaborating with others throughout the value
chain will be critical.
• Look outside your job at those with
whom you interface:
• Learn what they do
• Know their problems and pressures
• Know what makes them suceed—and help the
do so.
• Social media is critical to do this

14. The increasing complexity of the global
environment, the continued flattening of
organizations and the blurring of boundaries
demand leaders who can collaborate with
people from all parts of the world and in all
parts of the organization.

15. Challenges, Challenges,
Challenges….
• Leadership shortages
• Organizational challenges
• Global talent challenges
• Global engagement crisis
• Generations and the meaning of work
• Strategy-talent misalignment

16. Leadership Shortage
“For the past 25 years, we have optimized our
organizations for efficiency and quality. Over
the next quarter century, we must optimize
our entire society for innovation.”
-National Innovation Initiative, Council on
Competitiveness: December 2004
– Leadership skills and experience in demand
• Transcultural knowledge
• Leadership skills modified for local culture; market
• Creativity and innovation skills and experience

17. Organizational Challenges
• Intensifying competition for talent
• Shifting centers of economic activity
• Increased technological connectivity
• Dealing with regional diversity
• Speed of addressing problems and
opportunities
- McKinsey Report, 2008

18. Global Talent Challenges

19. Global Engagement Crisis
• 2010 Hewitt Associate study:
• Drop in Employee Engagement
• 46% organizations experienced a decline.
• 2009 Conference Board Report:
• Growing Job Dissatisfaction
• Down to 45% satisfied from 61% satisfied.
• 2009/2010 Towers Mercer study:
• Top Performers Feel Less Confident and Less
Committed
• Engagement level dropped 23%.

20. What is Engagement?
• Employees’ willingness and ability to contribute to company
success.’ (Towers Perrin)
• Staff commitment and a sense of belonging to the organization.’
(Hewitt)
• Employees’ commitment to the organization and motivation to
contribute to the organization’s success. (Mercer)
• Employees’ exertion of “discretionary effort”…going beyond
meeting the minimum standards of the job.’ (Hay)
• Creating a sense that individuals are a part of a greater entity.’
(Best Practices, LLC)
• Engagement represents the energy, effort, and initiative
employees bring to their jobs. (Harvard Business Review)

21. Generations—Meaning of Work
• Net Generation (born 1980-1995)
» Ensuring their “whole life” option stays intact, balance being
their absolute foundation for meaning
• Gen X’ers (born 1966-1978)
» Balancing responsibility and personal freedom,
differentiating unique value vis-à-vis older and younger
generations
• Boomers (born 1942-1965)
» Finding ways to connect their work to the social good and to
the new second stage of middle age they are inventing
• Veterans (born 1920-1942)
» Staying deeply engaged, extracting their unique value by
mentoring roles linked to the challenges of knowledge work.

22. Global Meaning of Work
Country Generation X Net Generation
United States Recognition & social status Endless, thrilling, intellectual
challenges
China Dream of high paid jobs, Personal independence &
frustrated by poor financial success; connect
education, worry about work with the world
stability
Mexico Attach meaning and identity Get ahead—social mobility
to education and company
position; pragmatic
concerns for salary and
security—but satisfy
household needs first
Germany Heavily influenced by old Persistent unemployment
social contract and has given some a cynical
paternalism; have idealism attitude; tension between
and hope to gain personal desire for personal
expression development and fear of not
finding good work
experience

23. The Need
The best employers the world over will be
looking for the most competent, most
creative, and the most innovative people on
the face of the earth and be willing to pay
them top dollar for their services.
Report of the New Commission on the Skills of the
American Workforce, 2006

24. Talent
Knowledge +
Skill sets + Mindsets
+ Commitment
= TALENT

25. Strategies Focus
• First Generation • Product/Markets
• Efficiency
• Second Generation • Core Competencies
• Capabilities
• Third Generation • Talent & Ideas
• Knowledge

26. We’re trying to implement
third-generation strategies
through second-generation
organizations run by first-
generation managers.
Christopher Bartlett

27. Global Leaders of the Future
The Jack Welch of the future cannot be
like me. I spent my entire career in the
United States. The next president of GE
will have to be someone who spent time
in Bombay, in Hong Kong, in Buenos
Aires. We have to send out best and
brightest overseas and make sure they
have training that will allow them to be
the leaders who will make GE flourish in
the future.
Global Explorers, 1999

28. The question is no longer
whether everyone will have
to globalize; the question is
how much, and in what ways.
McCall & Hollenbeck,
Developing Global Executives,

29. Most multinational companies now do a
good job of globalizing supply chains for
all their essential raw materials—except
human resources. Players in global
markets can no longer afford this blind
spot.

30. Global Leaders Need To:
• Manage dynamic complexity
• Respond with agility to crisis and opportunity
• Embrace the democratization of knowledge
• Engage in wisdom of crowds and social
networks to innovate and grow the business in
new markets
• Build global cross-cultural competence as a
critical business skill.
Source: Rogers& Blonski (2010) The Global Leadership Mindset. Chief Learning Officer.

31. The future is now.

33. Is the World Really Flat?

34. Vérité en-deçà des Pyrénées,
erreur eu-delà.
(There are truths on this side
of the Pyrenees which are
falsehoods on the other.)
Blaise Pascal

35. Is the World Really Flat?

36. Is the World Really Flat?

37. Is the World Really Flat?
Not according to:
• The GLOBE Studies
• The World Bank
• The World Values Survey
• The World Economic Forum
• The Global Mindset Institute

41. Perspective Matters

42. The world is not
flat…So What?

43. Your primary challenge is
to think globally and act
locally. Global Mindset
is the bridge!

44. Global Mindset—The Journey
• Define Global
Mindset
• Measure Global
Mindset
• Develop Global
Leaders with
Global Mindsets

45. The Corporate Challenge
How do we align and leverage the
efforts of our employees around the
world who join our company with
vastly different life experiences, from
diverse cultures and often
dramatically different contexts?
© Mary Teagarden, 2008

46. Global Mindset Studies:
• Behavior & • Knowledge
Skills & Know-
How
Mendenhall
Gupta &
&
Colleagues
Colleagues
, Bartlett &
Rhinesmith
Ghoshal
• Thought & • Role,
Perception Structure &
Reach

47. Global Mindset Studies

48. Challenge from Global Companies
What are global
mindsets and
how do we build
them?

49. What Is Global Mindset®?
A set of individual
characteristics that help
global leaders better
influence individuals, groups,
organizations and systems
unlike his or her own.
© Mary Teagarden, 2008

50. The Scientific Challenge
• Global mindset is in the eye of the
beholder —there are individual, group and
organizational level definitions.
• Assumed/asserted to be important—but
not tested.
• No comprehensive, validated instrument
for assessing global mindset as a multi-
dimensional construct.
© Mary Teagarden, 2008

51. The New Science of Global Mindset

52. management,
education org studies
training/HR language/
x-cult international
relations
#1
sampling plan: Review literatures, create/refine
interviews, focus formulate research frame research questions
groups w/int’l scholars n=8 global scholars
sr. acad. validate via
n-30 expert judges
Obj. #1
investigate the critique internally
#2 nature and relevance revise
sampling plan: of “global as needed feed back to
interviews and small mindset" participants
group discussions
with international categorize perceptions/
analyze data, observations, experiences/observations of “global
managers,
participant discussions mindset”+
execs, scholars
n=200
-Obj. #2
validate construct, differentiate and
focused group discussions define “global mindset”
#3 revise to state-of-art revise
scholarly w/participants
sampling plan: as needed
perspective
expert informant identity antecedents, consequences,
conference collect additional data, Obj. #3 and applications contingencies
n=44 #4 consolidate into validate construct, of “global mindset”
sampling plan: emergent themes revise to state-of-art
#5 practitioner
interviews w/
generate items re: perspective
sr. exec. experts revise
Intel/Psych/Soc capital
n=17 as needed
n-100 int’l MBA’s final ‘reality’ check,
+ psychometricians including emergent drill int’l leaders experiences/insights
factors of GI Mindset re:invid/org gl mindset successes
#6 #7 The Global Mindset
revise Items to
create pilot test: pilot test #2
assure Inventory
Global Mindset Inventory int’l managers
int’l MBA’s psychometric
draft n/800
n-,207 soundness

53. Thunderbird Faculty, Students & Alumni

55. Why Global Mindset?
• Individuals with a high stock of global
mindset can navigate cross-cultural
issues and understand the nuances of
global business.
• They understand the complexity
associated with global integration, know
how to manage global supply chain
relationships, are aware of political and
economic influences, and understand
global competitors and customers.

56. Why Global Mindset?
• A company’s stock of global mindset is
the sum of individual employees’ stocks
of global mindset.
• Organizations that have a high stock of
global mindset are able to compete more
effectively in the global economy.
• Global Mindset is multidimensional: it is
the sum of Intellectual, Psychological
and Social Capital.
• Global Mindset can be developed!
© Mary Teagarden, 2008

57. What Is Global Mindset®?
A set of individual
characteristics that help
global leaders better
influence individuals, groups,
organizations and systems
unlike his or her own.
© Mary Teagarden, 2008

58. Three Components of Global
Mindset®
• INTELLECTUAL CAPITAL: Knowledge of
global organization, industry, value networks
and cultural complexities
• PSYCHOLOGICAL CAPITAL: Passion,
excitement, respect, flexibility and openness
towards other cultures
• SOCIAL CAPITAL: The ability to build
sustainable trusting relationships with others
from diverse parts of the world.
© Mary Teagarden, 2008

59. Social Individuals
who possess Global
Capital the Corporations
behavioral
that are
flexibility and
discipline to
Global successful
Behavioral Repertoire
act Leaders in their different
Individuals global
appropriately who are
who have a markets
Psychological global Individuals effective in
Capital mindset who are influencing
capable of people What is
perceiving, from the game?
analyzing different What are
Intellectual and socio- the rules?
Capital decoding
cultural How do
the global
systems we win?
operating
environment
Individuals who
can accurately
identify effective
managerial action
in the global
operating
© Mary Teagarden, 2008 environment

61. Intellectual Capital
Global Business Cosmopolitan
Savvy Outlook Cognitive Complexity
Knowledge of global Knowledge of cultures in
different parts of Ability to grasp complex
industry the world concepts quickly
Knowledge of global Knowledge of geography, Strong analytical and
competitive business & history and important problem solving skills
marketing strategies persons of several countries
Knowledge of how to Up-to-date knowledge of
transact business & manage Ability to understand
important world events abstract ideas
risk in other countries
Knowledge of supplier Knowledge of economic and Ability to take complex
political issues, concerns, issues & explain the main
options in other parts hot topics, etc. of major points simply &
of the world regions of the world understandably

62. Psychological Capital
Passion for Diversity Quest for Adventure Self-Assurance
Interest in exploring Interest in dealing with
other parts of the world challenging situations Energetic
Interest in getting to know
people from other parts Willingness to take risks Self-confident
of the world
Interest in living in Willingness to test one’s Comfortable in
another country abilities uncomfortable situations
Interest in variety Interest in dealing with Witty in tough situations
unpredictable situations

63. Social Capital
Intercultural Empathy Interpersonal Impact Diplomacy
Ability to work well with Experience in negotiating
people from other parts Ease of starting a
contracts in other cultures conversation with a stranger
of the world
Ability to emotionally Strong networks with
connect to people from people from other cultures Ability to integrate diverse
other cultures and with influential people perspectives
Ability to understand
non-verbal expression of Reputation as a leader Ability to listen to what
people from other cultures others have to say
Ability to engage people
from other parts of the Credibility Willingness to
world to work together collaborate

64. Detailed Global Mindset Profile Example

65. What Our Data Says…
Companies that ignore the global
mindset do so at their own peril. The
ones that most effectively develop this
quality in their employees—particularly
senior leaders—will have a distinctive
advantage over their competitors.
Schon Beechler & Dennis Baltzley
Chief Learning Officer, July 2008

66. The Global Mindset Inventory
• The Global Mindset Inventory is a
scientific tool for assessing an individual
or organization’s stock of global
mindset.
• It is available online and takes about 10
minutes to complete the self-assessment.
• Leader’s receive a customized report
that includes their own, their
group/company, and general benchmark
data.

67. The Global Mindset Inventory
• The GMI is available in 3 versions:
• Corporate; Non-Business; Student (graduate &
undergraduate)
• The GMI is available in 4 languages:
• English; Chinese (Mandarin); Russian;
Japanese
• The GMI is available in 2 formats:
• Self-assessment; 360° (up to eight assessors)
• Over 15,000 individuals in many parts
of the world have completed the GMI.

68. The Global Mindset Inventory
• Individual, Group and Organizational
Developmental programs can be
assessed using GMI for evaluating
progress and effectiveness.
• Complements class content for courses like:
Political Economy; Cross-Cultural Negotiation;
International Communications; Global
Management
• Is available in Graduate (Masters) level
assessment questionnaire

69. Business School Application
• The GMI used in a pre and post test
design
– Is directed at business schools that have a focus on
Global Business, International Business,
International Management
– Is an ideal way to measure students’ readiness to
lead global organizations
– Evaluates the academic progress of students in the
area of Global Mindset and Global Leadership, with
pre-post testing
– May be used as a Learning Outcome Assessment
(LOA) tool, to satisfy the requirements of the
accrediting body, AACSB

70. Framework to Global Leadership
Experience
• Cultivate
Exposure Global
• Develop Leadership
Global
Mindset
Education
• Deepen
Global
Knowledge

71. Are MBAs Ready?
MBAs that do not have a well-
developed Global Mindsets are
NOT ready to compete in
today’s globalized world where
he or she must think globally
and act locally.

72. Good to Great!

73. 73

74. • If you would like to take the
assessment contact:
mary.teagarden@thunderbird.edu;
joy.mcgovern@thunderbird.edu or
mansour.javidan@thunderbird.edu
• For more information, please go to our
website:
www.thunderbird.edu/globalmindset